The Prudential Regulation Authority (PRA) have mandated that their Approved Person’s Regime needs updating to take into account Solvency II measures relating to governance, fitness and properness of relevant individuals.
The PRA has mandated a new framework for insurers to comply with, namely the Senior Insurance Manager's Regime (SIMR).
Those that run regulated firms should have clearly defined responsibilities and behave with honesty, integrity and skill.
To be Solvency II compliant, fit and proper assessment of people performing key functions; notification to the PRA of key function holders and primary Governance Map needs to be completed.
More focused range of SIMFs to be included and allocation of prescribed responsibilities to be included in Governance Maps.
• Define all key functions within the company to the PRA.
• Produce and regularly update a Governance Map that maps prescribed responsibilities to Senior Managers and to who is responsible for key functions.
• Obtain pre-approval for individuals for key Senior Insurance Management functions from the PRA.
• Document, complete and review on-going 'fit-and-proper' tests for controlled function heads and all persons performing key functions.
• Implement new set of conduct rules that will apply to all senior insurance managers.
• Define an effective way of notifying regulators and policing individuals if they believe individuals have failed to act in a 'fit and proper' manner.
• Produce Governance Maps to regulators upon request.
• Demonstrate effective governance structure.